EUR/CHF Outlook:
The EUR/CHF currency pair is currently trading below its recent average and near recent lows. The euro is facing pressure due to economic uncertainties, which may keep it stagnant in the coming period.
Key drivers:
• Rate gap: The European Central Bank and the Swiss National Bank are both maintaining cautious stances, though the Swiss franc benefits from strong safe-haven demand.
• Risk/commodities: Oil prices are currently high, which could further pressure European economies already facing challenges from geopolitical tensions.
• One macro factor: Ongoing geopolitical tensions, particularly affecting energy supplies, contribute to market volatility that may impact the euro's value.
Range:
The EUR/CHF pair is expected to drift within its recent 3-month range as both currencies react to external pressures and economic conditions.
What could change it:
• Upside risk: A significant resolution in geopolitical tensions could enhance the euro's appeal against the CHF.
• Downside risk: A further escalation of trade disputes or weak economic data from the Eurozone could deepen pressure on the euro.